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HomeMy WebLinkAboutResolution No. 14-C19RESOLUTION NO. 14-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA APPROVING A MARCH 17, 2014, SIDE LETTER AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AND THE AZUSA MIDDLE MANAGEMENT ASSOCIATION EFFECTIVE JULY 1, 2010 THROUGH JULY 31, 2014 WHEREAS, the City Council acknowledges Azusa Middle Management Association as the recognized employee organization representing those personnel occupying the positions identified in the Memorandum of Understanding (MOU) between the City and the Azusa Middle Management Association (AMMA), and WHEREAS, the AMMA and City Staff have met and agreed to a side letter agreement (Agreement) that clarifies how much "New Members" contribute towards their retirement costs, includes a one-time lump sum cash payment equal to 2.36% of their base salary for a twelve month period, a $59 per month increase to their flex benefit amount, temporary suspension of the tuition reimbursement program and the computer loan program and continues their MOU until July 31, 2014, and WHEREAS, the Agreement between the City of Azusa and the AMMA, is attached. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Azusa does hereby approve the Agreement attached hereto and does direct the representatives of management to affix their signatures thereon. The City Clerk shall certify the passage of this Resolution. PASSED APPROVED and ADOPTED, this 17`h day of March, 2014. Joseph Romero Rocha Mayor ATTEST: fit! e Cornejo, Jr City Clefk "` STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) I HEREBY CERTIFY that the foregoing Resolution No. 14-C19 wash duly adopted by the City Council of the City of Azusa at a regular meeting thereof, held on the 17` day of March, 2014, by the following vote of Council: AYES: COUNCILMEMBERS: GONZALES, ALVAREZ, ROCHA NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: CARRILLO, MACIAS G 0 � y Jr a omejo, Jr., City Clerk G SIDE LETTER OF AGREEMENT BETWEEN THE CITY OF AZUSA AND AZUSA MIDDLE MANAGEMENT ASSOCIATION REGARDING THE CONTINUATION OF THEIR CURRENT MOU THROUGH JULY 31, 2014, INCORPORATING THE CHANGES FROM THE SIDE LETTER OF AGREEMENT APPROVED JULY 16, 2013, WITH CERTAIN AGREED UPON CHANGES The City of Azusa ("City") and the Azusa Middle Management Association (`AMMA") have a Memorandum of Understanding ("MOU") that commenced on August 1, 2010 and was set to end on July 31, 2011. The City and AMMA entered into a Side Letter Agreement approved by City Council Resolution Number 12-052 on July 16, 2012, amending Sections of the MOU and extending the MOU until July 31, 2013. The Parties now wish to enter into this new Side Letter of Agreement to memorialize the following changes agreed to by both sides: 1. Section 1. in the MOU shall be amended to read as follows: The term of this Memorandum of Understanding (MOU) shall commence August 1, 2010 and shall continue in full force and effect until July 31, 2014. 2. Section 19. in the MOU shall be amended to read as follows: The City shall continue its contract with the California Public Employees' Retirement System (CalPERS), at the"2% @ 55 full formula" plan. The City shall also maintain the increased level of the 1959 Survivor Benefit. The City shall continue to pay both the "employee" and "employer" share of the cost. Effective the first full pay period after July 16, 2012, the employees agree to contribute S% towards the "employer" share of the cost of the CalPERS retirement benefit. In accordance with the Public Employees' Pension Reform Act (PEPRA) provisions "New Members" are required to pay their Ca1PERS Member Contribution Rate currently 6.75% of their salary. The "New Member" benefit formula 2% at Age 62 for Miscellaneous Employees and all other related PEPRA provisions went into effect by law on January 1, 2013. "New Members" — are new hires who are brought into CalPERS for the first time on or after January 1, 2013, and who have no prior membership in any California public retirement system; a new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system; or a member who first established CalPERS membership prior to January 1, 2013, and who is rehired by a different CalPERS emplover after a break in service of greater than six months are also considered "New Members." CalPERS refers to all members that do not fit within the definition of a "New Member" as "Classic Members." The Citv agrees that as Ione as "New Members" pay their Member Contribution Rate they will not contribute 5% of their salary toward the Employer Contribution Rate as all other AMMA covered employees have agreed 3. Section 20. in the MOU shall be amended to read as follows: The employees agree to a temporary suspension of Tuition Reimbursement from March 1, 2014 to July 31 2014 Employees who have been utilizing the Tuition Reimbursement Program immediately prior to this suspension may continue to participate in the program. No new participants will be considered until the end of this suspension. 4. Section 12. in the MOU shall be amended to read as follows: The employees agree to a temporary suspension of the Computer Loan Program from March 1, 2014 to July 31 2014 All current loans and terms remain in place No new participants will be considered until the end of this suspension 5. Section 9.3. in the MOU shall be amended to read as follows: 11.2. Bilingual Pay The City shall pay an additional $100 per month to personnel demonstrating a proficiency in the Spanish a foreign language if they are assigned and required to speak and translate a foreign language in performance of their duties. An additional payment of $100 per month shall be paid to those who are proficient in :v itten Spanish writing in the foreign language as well. Such payment is conditional upon demonstration of Spanish foreign language proficiency by a qualified third - party examiner mutually agreed upon by both the City and the Association. Employees may apply for bilingual pay at any time; however, examinations shall be conducted semi-annually. 6. Section 8.5. shall be added to the MOU and read as follows: 8.5. Lump Sum Payment Effective the first paycheck of the month following Council approval the city shall compensate each current AMMA covered employee with a one-time lump sum cash payment equal to 2.36% of their base salary for a twelve month period The one time lump sum cash payment will not be subject to PERS or PARS retirement benefits 7. Section 10.2. in the MOU shall be amended to read as follows: 10.2. Amount of Monthly Benefit Effective March 1, 2014, the City will increase the Flexible Benefit Plan to one thousand three hundred forty six dollars ($1 346) per month for each employee 2 — 8. Except as modified in this Side Letter of Agreement, the terms and conditions of the Side Letter Agreement approved by the City Council on July 16, 2012, and the MOU shall remain in effect as provided therein. FOR THE CITY: City Manager v Dated: l7 FOR THE AZUSA MIDDLE MANAGEMENT ASSOCIATION: Pl2'z-5 f 7<Ni A Dated:_ -3 /5 / % ` —